BEIJING: Iron ore futures held within a narrow range on Thursday as upbeat industry data from top consumer China lifted sentiment, but gains were capped as investors awaited cues on further stimulus from Beijing next week.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.19% lower at 783 yuan ($109.96) a metric ton, after hitting a intraday high of 789.5 yuan a ton earlier in the session.
The benchmark December iron ore on the Singapore Exchange was flat at $103.7 a ton, as of 0353 GMT. Both benchmarks ticked higher earlier in the session after official data showed China’s manufacturing activity in October expanded for the first time in six months, indicating that Beijing’s latest stimulus measures are helping the battered economy turn a corner.
However, the gains were pared as investors exercised caution over more stimulus measures next week, when China’s top legislative body, the National People’s Congress (NPC) Standing Committee, will meet. Also blurring the outlook were mixed fundamentals as “supply pressure is likely to persist with more shipments arriving, while demand for the key steelmaking ingredient held firm with steelmakers ramping up production when they could make money”, analysts at Huatai Futures said.
Other steelmaking ingredients on the DCE posted further losses, with coking coal and coke down 1.99% and 1.17%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were weaker. Rebar dipped 0.2%, hot-rolled coil nudged down 0.08%, wire rod shed 0.75% and stainless steel lost 0.62%.
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